Dorsey: Stay Long US; Spain & Switzerland Best Of Europe

June 30, 2014

ETF.com: That being the case, would you consider any kind of a pullback that we're seeing in GULF as an opportunity?
Dorsey: Yes, absolutely. Because you think about these old market adages, like "buy when the blood is running in the streets," well, it's running in the street. Switzerland is ranked No. 4. You definitely want to be in Switzerland, but I'd want to be in it on a pullback. That's the way I always like to buy: on sale. But I'm not looking for anything to bottom out or anything like that. I want the momentum to continue.

ETF.com: What about broad Europe? I know you mentioned EWP is No. 3, but what is your indicator pointing to for European equities?
Dorsey: For European equities, you definitely want to be in the right place at the right time, naturally. I would be in Sweden, Switzerland. Germany is a potential. But there isn't much happening there, though I wouldn't mind owning Germany. Last year the best play was England. Our English model, which I happened to own at that point in time, was up 50 percent last year. This year it hasn't done that much. India is a place that also looks fantastic, the WisdomTree India Earnings ETF (EPI | C-78).

ETF.com: Last year, the WisdomTree Japan Hedged Equity ETF (DXJ | B-61) was the big play. This year, eurozone equities are in focus, but based on the ECB's actions, some investors are skeptical about the euro. For investing in a region through an ETF, do you have a view on currency hedging?
Dorsey: I sure do have a view. As a matter of fact, I invest in these places. I invest directly in Europe. When I say "direct," when I own Sweden, I own Sweden in kronas. When I own Germany, I own it in euros. So I deal with lots of currencies around the world in my accounts. I have never once found it necessary to hedge anything, because the way I look at it is, I may hedge something and find out, at the end, I shouldn't have hedged it, because you never know until ex post facto.

People are worried about the euro, but I like the euro. If I'm investing in a country that is domiciled by euro, I'm in it. So currency hedging never crosses my mind. Maybe the big guys that run trillions of dollars may have to think about that. Still, I think the best thing to do is keep it as simple as you possibly can, and you're going to be a winner.

ETF.com: Thanks for your time.
 

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